Why business must lead the climate transition: insights from Andrew Prag

Andrew Prag has spent more than 25 years working across the energy sector, from global companies such as Shell to his current role at the We Mean Business Coalition. 

Speaking on episode 33 of The Decarbonisation Dialogue podcast, Andrew makes a compelling case for why business must sit at the heart of the climate transition and why that leadership role is already beginning to take shape.

After a period working in policy, Andrew said he was keen to return to engaging directly with business. 

In our podcast he says: “I wanted to make sure the most progressive business voices are being heard and that they’re helping to lead the transition and push governments in the right direction.”

Founded more than a decade ago in the run-up to the Paris Agreement, the We Mean Business Coalition brings together business organisations committed to ambitious climate action. Its purpose is to give a collective voice to companies that see their future in the energy transition and ensure those perspectives influence policymaking at the highest levels.

A central idea Andrew discusses is the “ambition loop”. He describes this as a positive cycle in which business action and government policy reinforce one another. 

He says: “Major, influential businesses are taking action on energy transition and climate change.

“They show governments they are confident, they want to go further, and that gives governments the confidence to enact stronger policies. Those policies then push more businesses into action.”

Andrew argues that effective leadership rests on four pillars: ambition, action, advocacy and accountability. 

He says you have to set a clear voluntary target that shows your direction of travel and refers to science-based targets as a key mechanism. But ambition must be backed by action, through transition plans and investment.

Advocacy and accountability, he adds, are often less obvious but equally important. 

“Advocacy is about businesses speaking up to policymakers to show they want this change,” he says. “And accountability is about being transparent, clear disclosure, clarity with investors, so the whole ecosystem moves forward together.”

While the science behind climate change is increasingly urgent, Andrew warns against framing the issue in a way that feels overwhelming or defeatist. 

He adds: “You can’t make the whole thing too depressing. People just switch off.” 

Instead, he emphasises the opportunity embedded in the transition. “What I’ve really seen change is that the economics are fundamentally on our side now. That changes everything.”

According to Andrew, businesses can now confidently tell boards and investors, that transition is the future.  “This is the future. This is how we stay competitive, how we continue growing and remain relevant.” 

That, he noted, is a very different conversation from the corporate responsibility arguments of 15 or 20 years ago.

Despite political polarisation, particularly in the United States, Andrew says business support for climate action remains strong. Surveys show overwhelming backing for a rapid shift to renewable energy, with many leaders factoring climate policy into where they invest and operate.

Affordability, however, remains critical. “People have to see it in their bills,” he says. “They have to feel it in their pockets.” 

He pointed to the need for policy to ensure falling clean energy costs translate into real household savings, while redirecting fossil fuel subsidies and protecting vulnerable communities.

Individuals also have a role to play, but Andrew stresses that responsibility cannot rest solely with consumers. “We need the whole system to be shifting,” he says, driven by business leadership and strong government signals.

Looking ahead, Andrew highlights the importance of long-term government targets backed by near-term action. 

“Every tenth of a degree matters,” he says. While the challenge is immense, he remains cautiously optimistic. History, he noted, shows that technological transitions often accelerate faster than expected and the signs suggest this one may already be doing just that.

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